How to Pick the Best Rewards Credit Card

Posted: January 1, 2015 12:00 AM

Last update: 1/4/2016

America is becoming a more plastic driven economy. Even the smallest of merchants can accept credit cards with an inexpensive Square credit card reader. People start getting credit cards when they are in college, with the majority of the public possessing several credit cards in their wallet. There are safety advantages paying with a credit card over cash or a debit card. It is time to make the best of this situation.

Everyone loves to get rewarded for spending money. This is kind of an absurd statement, but a reward helps lessen the damage from paying your insanely high credit card bill.

We wrote this article because BuyVia is focused on helping you save money and shop smarter. A Google search looking for the best credit cards will inevitability bring you to websites, which promote cards that pay them referral fees, rather than the truth. There is no need to worry about that bias factor with this article, we do not receive any kickbacks if you apply for any of these cards.

Getting 1% back on your purchases is way too boring and miniscule. Our goal was to find the best credit cards and apply for them ourselves.

Credit Card Criteria

Here are some assumptions that we made in selecting the best rewards credit card.

We tried to minimize the total number of cards

No annual fee unless it is worth paying the fee

We pay off bills every month in full

We are not looking for the best APR or balance transfer deal

Cash back, not points

No caps on rewards

Credit Score

Our goal is to maximize rewards, but we understand people with differing credit scores will affect which credit cards they can get approved for. If you are trying to build up your credit score, you will probably want to apply for all these cards at the same time, minimizing the impact. Older credit cards should be stored away even if they are not used, this helps with your credit score.

Each category has a different optimal rewards card. We will now examine the most popular areas of spending and show you which credit card BuyVia has deemed the best.

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We place a little Post it note behind each credit card noting its rewards amount and categories. There are also apps that can give you this information.

There are several credit cards including the Chase Freedom card and a Discover Card, which rotate between 5% bonus categories every quarter. There is usually a limit of $1500, severely reducing the potency of the card.

Grocery – Supermarket

The average consumer spends $3800 on groceries every year. Let us get some money back, beyond the usual couponing and buying sale items.

Even though the closest Sam’s Club is over an hour away from the San Francisco area, we signed up for a Sam’s Club membership just to use this credit card. You can apply online and join their membership online. You will also have access to purchasing items on samsclub.com. The downside is that they send a rewards certificate that needs to be redeemed in store, even if you want to credit your account.

Eating out costs a lot of money. The following credit card helps reduce the $2800 an average person spends on restaurants every year.

Sam’s Club Mastercard

Free with a Sam’s Club Membership ($45/year)

5% back from US and Puerto Rico gas stations on the first $6000 per year

3% back on dining and travel purchases (Excluding purchases at wholesale clubs other than Sam’s Club)

1% from everything else

With one card, you can save on gas, dining, and travel!

Department Stores

It makes sense to apply for a credit card from a specific store, if you purchase many items from them every year. Here is a list of the top department store credit cards due to their rebate or coupon policy.

If you are loyal to a specific airline, you should sign up for the rewards card tied to that airline. Other credit cards that you should consider include those, which have transferrable miles. Also be on the lookout for special credit card offers which include a bunch of miles for spending a certain amount of money within the first couple of months.

Chase Sapphire Preferred Card

Free for the first year, $95 per year there after

Get 40,000 points when you spend $3000 in the first 3 months. That is worth $500 in travel from the Chase Ultimate Rewards site.

Get 5000 points when you add an authorized user and they make a purchase within the first 3 months

2X points on travel and dining

1X points on everything else

1:1 point transfers to leading frequent flyer programs

No foreign transaction fee

20% off travel when booked through Chase

The Barclaycard Arrival Plus World Elite offers a very similar reward profile but costs $89 per year after the first year is free. You do get a free copy of TripIt pro ($49/year value), access to a no fee travel planner and discounts on hotels.

Best Rewards Card for Hotel Points

This specific hotel chain credit card offers great rewards if you like their hotel brands. These include: Westin, Sheraton, W, The Luxury Collection, and more

American Express Starwood Preferred Guest

Free for the first year, $65 thereafter

Sign on bonus of 10,000 points after first purchase, additional 15,000 for spending $5000 within 6 months

Up to 5 reward points on their hotels

1 point for everything else

Transfer points directly to miles

The Best General Rewards Credit Cards

For regular consumers, we recommend:

Citi Double Cash Card

No annual fee

2% cash back on all purchases

You get 1% reward after you make a purchase and the other 1% after you pay.

They deposit rewards into a Fidelity Investment account, so this is a major requirement. This is a great way to save for retirement though. This transitioned from an American Express card in 2016. A Fidelity 529 rewards credit card is also available.

US Bank Cash Plus Visa Signature Card

No annual fee

5% cash back on first $2000 in combined net purchases each quarter on 2 categories of your choice (cell phone plans, gym membership, restaurants, and more)

With a little bit of effort, you can really maximize the rewards you receive from a credit card. We hope you enjoy this list of the best rewards credit cards. If you have other favorites please be sure to leave a comment below.